ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Team Health Holdings's annualizedNet Income for the quarter that ended in Sep. 2016 was $42 Mil.
Team Health Holdings's average Total Assets over the quarter that ended in Sep. 2016 was $4,286 Mil. Therefore, Team Health Holdings's annualized ROA % for the quarter that ended in Sep. 2016 was 0.98%.
The historical rank and industry rank for Team Health Holdings's ROA % or its related term are showing as below:
TMH's ROA % is not ranked *
in the Business Services industry.
Industry Median: 3.565 * Ranked among companies with meaningful ROA % only.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Team Health Holdings's ROA %
For the Staffing & Employment Services subindustry, Team Health Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Team Health Holdings's ROA % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Team Health Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Team Health Holdings's ROA % falls into.
Team Health Holdings ROA % Calculation
Team Health Holdings's annualized ROA % for the fiscal year that ended in Dec. 2015 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Sep. 2016) net income data.
ROA % is displayed in the 30-year financial page.
Team Health Holdings (NYSE:TMH) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Sep. 2016) net income data. The Revenue data used here is four times the quarterly (Sep. 2016) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Team Health Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Team Health Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Team Health Holdings (Team Health Holdings) Business Description
Team Health Holdings Inc was founded in 1979. It is the suppliers of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States, based upon revenues and patient visits. It serves approximately 3,400 civilian and military hospitals, clinics and physician groups in 47 states with a team of more than 18,000 affiliated healthcare professionals, including physicians, physician assistants, nurse practitioners and nurses. It recruits and contracts with healthcare professionals who then provide professional services within third-party healthcare facilities. It is a physician-founded organization with physician leadership throughout its business and since its inception in 1979; it provided outsourced services in hospital emergency departments, or EDs. It also provides comprehensive programs for hospital medicine, anesthesiology, pediatrics and other healthcare services, by providing permanent staffing that enables the management teams of hospitals and other healthcare facilities to outsource certain management, recruiting, hiring, payroll, billing and collection and benefits functions. The range of services that it provides to its clients include: recruiting, scheduling & credential coordination for clinical and non-clinical medical professionals; coding, billing & collection of fees for services provided by medical professionals; provision of experienced medical directors; administrative support services, such as payroll, professional liability insurance coverage, continuing medical education services & management training; risk & claims management services and standardized procedures. Healthcare facilities seek third-party physician staffing and administrative service providers that not only could improve department quality, productivity and patient satisfaction while reducing overall costs, but also offer a breadth of staffing and management services, billing & reimbursement expertise, a reputation for regulatory compliance, financial stability and a demonstrated ability to recruit & retain qualified physicians and technicians & nurses. It competes against local physician groups and self-operated hospital EDs. Its operations and relationships with healthcare providers such as hospitals are subject to increasing regulations by numerous federal, state and local governmental entities.
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